Jet Airways crisis: Etihad, Hinduja re-emerge as contenders; to submit joint EoI to revive airline
BusinessToday.In July 22, 2019
Etihad Airways and Hinduja Group have reemerged as contenders to revive Jet Airways. The two companies, which opted out of the fray earlier, are likely to submit a joint Expression of Interest (EoI) to resurrect Jet, which is already facing insolvency proceedings.
Both the companies are holding talks and reviewing funding requirements to pay offthe Jet Airways creditors, Business Standard reported. Resolution Professional (RP) Ashish Chhawchharia, who's handling Jet's insolvency proceedings, has invited EoIs to sell the assets of the grounded airline by August 3.
In an advertisement posted on the Jet Airways website as well as newspapers, Chhawchharia is likely to reveal the provisional list of prospective resolution applicants on August 6.However, objections must be submitted by August 11. After receiving the objections, the final list of prospective resolution applicants will be issued on August 14.
These applicants must submit their resolution plans by September 5, the advertisement said. The estimated date for submission for the resolution plan by the RP to the National Company Law Tribunal (NCLT) for approval is September 20.
The Jet Airways assets up for sale include 14 aircraft, including 10 Boeing planes, 49 per cent stake in Jet Privilege and a few buildings. The airline's lenders have also listed spares, slots and routes as the assets.
The debt-laden airline has liabilities over Rs 36,000 crore. These include more than Rs 10,000 crore of vendor dues, Rs 8,500 crore along with interest owed to the lenders, over Rs 3,000 crore in salary dues, and over Rs 13,500 crore in accumulated losses over the past three years.
Jet Airways had grounded its operations on April 17 after running out of funds to stay afloat. The lenders, who were in control of the airline's board, had invited bids from strategic and financial investors to sell between 31.2 per cent and 75 per cent stake in the airline.
Four bidders had submitted non-binding bids for the stake sale in April, whereas Etihad Airways, which owns 24 per cent stake in Jet Airways, had submitted a conditional bid. However, none of the bidders moved forward to take control of the embattled carrier.Following this, the lenders took the airline to the NCLT on June 17.